However, Shkreli’s unrelated fraudulent activity as a hedge fund manager led to his arrest, trial and conviction on securities fraud. This is the first fraud trial since Bernie Madoff’s to garner such media attention, public interest and academic discussion. But that wasn’t just because of Shkreli’s reputation for frequently and outlandishly using social media or his lawyer quoting Lady Gaga in his opening statement. (See
Defending Martin Shkreli: How His Lawyer Aims To Win, by Jacob Frenkel, Forbes, July 5.)

This fraud was also notable because it apparently didn’t leave its investors at a financial loss. In fact, Shkreli eventually repaid all investors with sizeable profits, which led him to denounce the government’s prosecution as a “witch hunt of epic proportions.” (See
Why ‘Pharma Bro’ Martin Shkreli Is Swaggering Into Jail, by Misyrlena Egkolfopoulou, Patricia Hurtado and Chris Dolmetsch, Bloomberg, Aug. 4.)

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